Discarding the old, in the new supermarkets - Asia

The increase popularity of shopping malls in Asia does help to put its most important tenant - supermarket in winning position over traditional farmers markets. For Kuching it is a double blow as after the closure of Ceko market the city has no markets in the city centre (except the Satok sunday wet market 1km away) hence giving golden opportunities for supermarkets to extend their radius to dominate and continue threaten the remaining old shops at the old quarters of Chinatown and Indian street.

The new Plaza Merdeka to be built in the heart of the old quarters presumably will has a supermarket will take over the original retail pattern left from the Ceko Market nearby (about 150m away) and will pose significant threat to the remaining shop fronts foods and produces and other retail sectors on that area.

Will the people go to the shopping mall to get all they need under one roof ignoring other traditional retails around the area?

The following excerpt taken from article published by Food and Agriculture Organization of the United Nations:

The move to supermarkets in Asia is driven by a number of factors - including automobiles...

• Income growth has increased ownership of refrigerators, which has spurred a shift from daily to weekly shopping, and of cars, which permit large volume shopping at distant locations

• Changing consumer preferences led by women's entry into the workforce. "Working women" prefer one-stop, fast, convenient, and value-for-money shopping

• Changing eating habits - with more women working outside the home and families travelling further to work, there is increasing demand for processed food

• Development of infrastructure, e.g. highways and transport, has favoured the development of supermarket chains

• Low retail margins and fierce competition has created a "buyer's market" in which consumers enjoy low-cost services and quality - and happily switch between retail outlets

• Demographic, cultural, social changes, including a growing proportion of nuclear families and "one-person households" and growing use of credit cards.

• Increased travel has exposed Asians to modern retailing, a wider range of products and the availability of fresh produce "out of season".

The following excerpt taken from Differences in Factors Attracting Consumers to Taiwan's Supermarkets and Traditional Wet Markets

Journal of Family and Economic Issues

Exit interviews were used to summarize factors attracting consumers to six supermarkets and three wet markets in a representative city. Using the history of the marketplace as the foundation for analysis, the strengths and weaknesses of the two retail formats are introduced and are compared to the consumer response data. Findings indicate that the decline of Taiwan's traditional markets will probably continue until all are replaced by new retail formats. Currently, the traditional market is in the weakest of all the retail positions since it supplies the needs of a shrinking population of older consumers with preferences and shopping behaviors unlike those of younger, nontraditional consumers. Supermarket expansion is slowing because new hypermarkets, convenience stores, and warehouse stores are competing to satisfy the needs of the younger, more mobile target population. Overall, store formats that provide lower prices, sales promotions, a good environment, good product quality, and good service have the greatest opportunity to build consumer loyalty and increase market share."

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